Deputy Prime Minister Nick Clegg today became the first party leader to say he would refuse any big pay rise offered to MPs.

The Liberal Democrat said if the body responsible for setting MPs’ wages recommended an expected £7,500 rise he would send the money back.

Pressure is now on the Prime Minister and Labour Leader Ed Miliband, both of whom have criticised the rise but are yet to say if they would keep it.

Mr Clegg’s words came as a huge row erupted over the increase which would lift MPs’ wages to £75,000 a year.

The Lib-Dem leader said: “Speaking for myself I would certainly seek to do whatever I can to make sure that either this decision is not taken in the first place — but that’s out of my hands.

“But, secondly, if it were to be taken, not to take that pay increase.”

MPs had hoped transferring responsibility for pay to the Independent Parliamentary Standards Authority would free them from awkward decisions over wages.

But reports that Ipsa will suggest increasing pay in a series of rises from 2015, coupled with higher pension contributions, have reopened controversy.

Business Secretary Vince Cable warned the public reaction to a pay rise would be “very hostile”.

Tory backbencher and former minister Tim Loughton told the BBC: “For MPs to be offered £7,000 – or whatever it is, we don’t know the details yet – would be absolutely absurd. I for one wouldn’t be accepting it now.”

But another senior Tory backbencher claimed MPs should get a rise at some point as they were underpaid.

Mark Pritchard, MP for The Wrekin, said: “Most sensible people will say when you compare it across Europe, the fact is that British parliamentarians have fallen behind.”

Labour MP Tom Harris said Ipsa had been a “colossal mistake” and MPs should once again take decisions over their own pay.